Berlin (dpa) - Bureaucracy, a shortage of skilled workers, high energy prices and falling demand are weighing on Germany's mechanical engineering companies. Companies in Germany's export-oriented key industry are facing the coming year with subdued expectations, according to a survey presented by the German Engineering Federation (VDMA ) in Berlin on Tuesday. At the top of the list of priorities from the companies' point of view are reducing bureaucracy and the availability of qualified workers, followed by energy prices and labor costs.

"The frustration caused by bureaucracy and the flood of regulations is extremely annoying for companies," said VDMA President Karl Haeusgen at the Mechanical Engineering Day. He welcomed the Federal Ministry of Economics' initiative to reduce bureaucracy. However, bureaucratic costs come from many sources. "What we need is a collective effort." Economics Minister Robert Habeck has announced a reduction in bureaucracy for companies, particularly with regard to complex information and reporting obligations.

At the Mechanical Engineering Day, Habeck held out the prospect of a swift solution for cheaper electricity in industry. Long debates instead of decisions create uncertainty. The Green politician said that the situation of energy-intensive companies was not of their own choosing, but had "in a sense been politically created". "And it can't be that Putin decides which chemical industry we have in Germany." He proposed the industrial electricity price for this particular situation.

Haeusgen criticized the proposal as a structurally conservative and oversized subsidy project. Instead, the mechanical engineers are calling for a tax reform to relieve the burden on companies and lower and middle income groups.

Using all technologies for the energy transition

As an antidote to the high energy prices, the mechanical and plant engineering industry is calling for the faster expansion of renewable energies and reserve power plants. "The energy transition must succeed and this requires much more renewable electricity," emphasized the VDMA President. "The mechanical and plant engineering industry has the technologies to combat the causes and consequences of climate change, now they must finally be used on a broad front. There must be no fundamental exclusion of individual technologies such as CO2 storage," he added. On the other hand, the traffic light coalition must now finally tackle the announced reform of grid fees and reduce the electricity tax. "A bridge electricity price for industry may only be decided for a clearly defined group of customers with a very clear time limit. Incentives to save energy must not be thwarted. And it must be clarified in advance that such a measure is also compatible with EU state aid law," said Haeusgen.

Order backlog lower than the long-term average - production downturn expected

According to the survey, the months-long decline in orders is now clearly leaving its mark on mechanical engineering companies. 60 percent of the 700 companies surveyed in October stated that they currently have a lower order backlog than the long-term average. 22 percent expect that the current order backlog will not be able to support production in the coming year. This has consequences for sales expectations.

One in five companies (20%) expect sales to stagnate in 2024, while just under a quarter (23%) anticipate a decline of up to 10%. Just under 35% expect growth of up to 10%, including price increases. "All of this confirms our forecast that 2024 will not be an easy year for the mechanical and plant engineering sector," said Hauesgen. "We continue to expect a real decline in production of 2 percent." The association also recently predicted a 2 percent decline in production for the current year.

Labor market needs easing and more foreign skilled workers

To combat the shortage of skilled workers, Haeusgen called for, among other things, a flexibilization of the Working Hours Act and an extension of the average weekly and lifetime working hours. "40 hours per week must also become the new normal in the metal sector, just as it is a matter of course in many other industries and EU countries."

In addition, the recruitment of foreign skilled workers must be further accelerated and made less bureaucratic. However, Habeck fears that a negative attitude in the immigration authorities will make it more difficult to find skilled workers for Germany. "My biggest concern, if I may say so openly, is that the immigration offices and visa offices are not in tune with the system," said the Green politician. In recent years, the attitude has been: "Actually, we don't want these people". Now you have to say clearly: "Now they are wanted."

The mechanical and plant engineering sector, which employs over one million people, has been suffering from a shortage of skilled workers for years. In view of the subdued outlook, however, only a good 30% expect to increase the number of employees in the coming year according to the survey, just under 40% expect stagnation and just under 30% expect job cuts.